Great Pacific Gold raising $5 million for PNG exploration
Great Pacific Gold Corp. [GPAC-TSXV, FSXLF-OTCQX, VEH-FSE] is strengthening its balance sheet to support a 2025 work program at its Wild Dog Project in Papua New Guinea. In keeping with that goal, the company has announced a private placement financing of up to 11.1 million units priced at 45 cents per units for gross proceeds of $5.0 million.
Great Pacific shares rose 6.25% or $0.03 to 51 cents in early trading Monday. The shares trade in a 52-week range of $1.38 and 45 cents.
Under the terms of the financing, each unit will consist of one common share and one-half of a share purchase warrant. Each whole warrant can be used to purchase one additional share for 70 cents per warrant share for 24 months from the date of issuance.
The company said net proceeds will be used for continued diamond drilling at the Kesar Project, contiguous with K92 Mining Inc.’s [KNT-TSX, KNTNF-OTCQX] operations in the Eastern Highlands of Papua New Guinea, the initiation of a recently announced 2025 work plan for the Wild Dog Project on the Island of New Britain, as well as for additional exploration activities in Papua New Guinea. K92’s key asset in the region is the Kainantu Gold Mine, a high-grade, low cost underground mine.
“With the recently announced 2025 work plan for our Wild Dog project and our plan to continue drilling at Kesar in Q1, it was important for the company to strengthen its balance sheet,’’ said Great Pacific CEO Greg McCunn. “Combined with the $1 million near-term cash infusion from the Reedy Creek sale, this financing puts us in a strong position to execute on our exploration plans and deliver on a number of important milestones for the company in 2025,’’ he said. The company recently sold its Reedy Creek tenements in Victoria, Australia for $1 million cash on closing, $3 million cash on milestones and 6.0 million shares of Zincore Metals Corp. [ZNC.H-TSXV].
Great Pacific Gold has a portfolio of exploration stage projects in Papua New Guinea and Australia. Wild Dog, located in East New Britain province of PNG, is a brownfield exploration project with a history of small-scale gold mining. The project contains numerous epithermal and porphyry hydrothermal-magmatic targets evidenced by previous exploration and operations. The company completed a road refurbishment in August, 2024, and access to the project has been established for baseline environmental and exploration work. The company said it hopes to mobilize a track-mounted drill rig to the project in the second quarter of 2025.
Kesar is located in the Eastern Highlands province of PNG and lies contiguous with K92 Mining’s mine tenements. Kesar is a greenfields exploration project with several high priority targets in close proximity to the property boundary of K92, Multiple epithermal veins at Kesar are on strike and have the same orientation as key K92 deposits. Exploration work to date by Great Pacific at Kesar has shown that these veins have high grades of gold present in outcrop and very elevated gold in soil grades, coincident with aeromagnetic highs.